EX-99.1 2 d351018dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO

Brooks Automation Reports Fiscal Second Quarter Ended March 31, 2012 Results

CHELMSFORD, Massachusetts, May 10, 2012 – Brooks Automation, Inc. (Nasdaq:BRKS), a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing and life sciences today reported financial results for the second quarter and six-months ended March 31, 2012.

Fiscal Second Quarter of 2012 Financial and Operational Highlights:

 

   

Revenues were $139.3 million; Order Bookings increased 20.9% sequentially to $155.3 million;

 

   

GAAP EPS was $0.14 and EPS excluding special charges was $0.20;

 

   

Adjusted EBITDA was $20.6 million;

 

   

Cash, Cash Equivalents and Marketable Securities as of March 31st were $204.3 million, or $3.10 per diluted share with no Debt;

 

   

Generated 40 Design-in-Wins during the first six months of fiscal 2012 with OEM Customers.

Management Comments

“We generated revenue and earnings during the quarter at the high end of our guidance range due to a number of factors including 21% sequential growth in our Product Solutions segment as we had full participation in the front end semiconductor market recovery and we improved consolidated gross margin by 110 basis points on a sequential basis,” stated Steve Schwartz, President & Chief Executive Officer of Brooks. “In addition, our Life Science Systems revenue continued to grow and achieved profitability absent purchase accounting adjustments. We are pleased with the continued progression of this business segment.”

Dr. Schwartz continued, “During the first six months of this year we made improvements in many aspects of our business and will be focusing on better overhead absorption, higher gross margins and enhanced supply chain management during the second half of fiscal 2012. With our strong cash position, no debt and increasing cash flow, we are well positioned to reinvest in our business and continue to offer our customers the next generation of product and systems solutions.”

Second Quarter of Fiscal 2012 Results

Revenues for the second quarter of fiscal 2012 were $139.3 million, compared to revenues of $120.2 million in the first quarter of fiscal 2012 and $192.7 million in the second quarter of fiscal 2011, which included $49.1 million from the Contract Manufacturing business that was sold at the end of the third quarter of fiscal 2011. Revenues for the Brooks Product Solutions segment increased 21.3% on a sequential basis compared to the first fiscal quarter of 2012 with 32.2% growth in product sales into semiconductor markets. Revenues for the Brooks Life Science Systems segment increased 14.1% sequentially with strong Automated Sample Management store revenues, while revenues for the Brooks Global Services segment decreased 3.9% on lower pump service revenues.

Order bookings for the second quarter of fiscal 2012 grew 20.9% to $155.3 million, compared to order bookings in the fiscal first quarter of $128.5 million. Bookings included strong Life Science Systems orders for fiscal 2013 delivery.


Gross profit margin was 34.7% for the second quarter of fiscal 2012, compared to gross profit margins of 33.6% for the first quarter of fiscal 2012 and 32.0% for the second quarter of fiscal 2011. The second quarter of fiscal 2012 improved 110 basis points compared to the first quarter of fiscal 2012 due to a larger contribution from the higher margins Brooks Life Science Systems segment as operational performance continues to improve. Gross margins as compared to performance in 2011 are impacted by the Life Science Systems acquisitions and the Contract Manufacturing divestiture.

Net income for the second quarter of fiscal 2012 amounted to $9.5 million, or $0.14 per diluted share, which includes Life Science Systems acquisition related adjustments of $0.5 million and a $3.0 million charge related to the write-off of in-process research & development from a technology acquisition. Adjusted net income excluding these special charges was $13.0 million or $0.20 per diluted share. This compares to first quarter fiscal 2012 net income of $3.0 million or $0.05 per diluted share and $26.6 million or $0.41 per diluted share in the second quarter of fiscal 2011.

Adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) for the second quarter of fiscal 2012 was $20.6 million, which compared to $10.8 million in the first quarter of fiscal 2012 and $34.1 million in the second quarter of fiscal 2011. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated statements of operations, balance sheets and statements of cash flows included in this release.

Net cash provided by operating activities for the second quarter of fiscal 2012 was $16.6 million, which drove an increase in total cash and marketable securities to $204.3 million at March 31, 2012.

Six Months ended March 31, 2012 Results

Revenues for the six months ended March 31, 2012 were $259.6 million, compared to revenues of $371.0 million for the six months ended March 31, 2011, which included $95.0 million from the Contract Manufacturing business that was sold at the end of the third quarter of fiscal 2011. Net income for the six months ended March 31, 2012, including the impact of certain adjustments and charge-offs were $12.5 million or $0.19 per diluted share compared to $50.1 million or $0.77 per diluted share for the six months ended March 31, 2011.

Quarterly Cash Dividend

The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on June 29, 2012 to stockholders of record on June 8, 2012. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company’s Board of Directors.

Guidance for Third Fiscal Quarter of Fiscal 2012

The Company announced revenue and earnings guidance for the third quarter of fiscal 2012. Revenues are expected to increase sequentially up to 5% and range between $140 million and $147 million. GAAP earnings are expected to range between $0.13 and $0.18 per diluted share and non-GAAP earnings, excluding special charges which will arise principally from certain restructuring activities, are expected to range between $0.15 and $0.20.

Conference Call

Brooks management will webcast its second quarter earnings conference today at 4:30 p.m. Eastern Time to discuss the fiscal second quarter business highlights. During the call, Company management will respond to questions concerning, but not limited to, the Company’s financial performance, business conditions and industry outlook. Their responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Brooks’ website at www.brooks.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call (888) 419-5570 (US only) or (617) 896-9871 to listen to the live broadcast. The passcode for this telephone access is 604 100 53.


About Brooks Automation, Inc.

Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing, life sciences, and clean energy. Our technologies, engineering competencies and global service capabilities provide customers speed to market, and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, we have been a leading partner to the global semiconductor manufacturing market and through product development initiatives and strategic business acquisitions; we have expanded our reach to meet the needs of customers in the life sciences industry, analytical & research markets and clean energy solutions. Brooks is headquartered in Chelmsford, MA, with direct operations in North America, Europe and Asia.

For more information, please visit www.brooks.com.

“Safe Harbor Statement” under Section 21E of the Securities Exchange Act of 1934

Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks’ financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include statements regarding our revenue and operating margin expectations, our ability to develop further our business in new and adjacent markets, and our ability to achieve financial success in the future. Factors that could cause results to differ from our expectations include the following: volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers - particularly those manufacturing in Thailand - in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; continuing uncertainties in global political and economic conditions, and other factors and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K and our quarterly reports on Form 10-Q. As a result we can provide no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.


BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)

 

     March 31,
2012
    September 30,
2011
 

Assets

    

Current assets

    

Cash and cash equivalents

   $ 81,155      $ 58,833   

Restricted cash

     817        1,293   

Marketable securities

     71,057        65,695   

Accounts receivable, net

     80,492        76,701   

Inventories, net

     105,065        107,654   

Prepaid expenses and other current assets

     10,051        10,348   
  

 

 

   

 

 

 

Total current assets

     348,637        320,524   

Property, plant and equipment, net

     66,676        68,596   

Long-term marketable securities

     52,059        81,290   

Goodwill

     88,440        84,727   

Intangible assets, net

     43,881        44,314   

Equity investment in joint ventures

     33,924        34,612   

Other assets

     3,059        2,557   
  

 

 

   

 

 

 

Total assets

   $ 636,676      $ 636,620   
  

 

 

   

 

 

 

Liabilities and equity

    

Current liabilities

    

Accounts payable

   $ 46,048      $ 40,199   

Deferred revenue

     10,595        14,073   

Accrued warranty and retrofit costs

     7,281        7,438   

Accrued compensation and benefits

     12,820        17,288   

Accrued restructuring costs

     120        293   

Accrued income taxes payable

     3,273        4,015   

Accrued expenses and other current liabilities

     13,329        12,433   
  

 

 

   

 

 

 

Total current liabilities

     93,466        95,739   

Income taxes payable

     10,318        11,728   

Long-term pension liability

     7,209        7,161   

Other long-term liabilities

     3,401        3,394   
  

 

 

   

 

 

 

Total liabilities

     114,394        118,022   
  

 

 

   

 

 

 

Contingencies

    

Equity

    

Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding

     —          —     

Common stock, $0.01 par value, 125,000,000 shares authorized, 79,778,340 shares issued and 66,316,471 shares outstanding at March 31, 2012, 79,737,189 shares issued and 66,275,320 shares outstanding at September 30, 2011

     798        797   

Additional paid-in capital

     1,813,848        1,809,287   

Accumulated other comprehensive income

     16,710        19,480   

Treasury stock at cost, 13,461,869 shares at March 31, 2012 and September 30, 2011

     (200,956     (200,956

Accumulated deficit

     (1,108,720     (1,110,599
  

 

 

   

 

 

 

Total Brooks Automation, Inc. stockholders’ equity

     521,680        518,009   

Noncontrolling interest in subsidiaries

     602        589   
  

 

 

   

 

 

 

Total equity

     522,282        518,598   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 636,676      $ 636,620   
  

 

 

   

 

 

 


BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)

 

     Three months ended
March 31,
    Six months ended
March 31,
 
     2012     2011     2012     2011  

Revenues

        

Product

   $ 117,621      $ 174,936      $ 214,719      $ 336,125   

Services

     21,716        17,715        44,846        34,893   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     139,337        192,651        259,565        371,018   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues

        

Product

     75,443        118,661        139,732        227,634   

Services

     15,612        12,316        31,194        24,391   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenues

     91,055        130,977        170,926        252,025   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     48,282        61,674        88,639        118,993   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Research and development

     12,529        9,442        24,478        18,340   

Selling, general and administrative

     24,270        25,245        51,012        49,723   

Restructuring charges

     42        246        245        460   

In-process research and development

     3,026        —          3,026        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     39,867        34,933        78,761        68,523   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     8,415        26,741        9,878        50,470   

Interest income

     273        261        552        536   

Interest expense

     —          (28     (7     (29

Other income (expense), net

     (51     256        295        417   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of joint ventures

     8,637        27,230        10,718        51,394   

Income tax provision (benefit)

     (659     1,035        (359     2,023   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before equity in earnings of joint ventures

     9,296        26,195        11,077        49,371   

Equity in earnings of joint ventures

     195        408        1,420        718   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 9,491      $ 26,603      $ 12,497      $ 50,089   

Net income attributable to noncontrolling interests

     (5     (18     (13     (18
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Brooks Automation, Inc.

   $ 9,486      $ 26,585      $ 12,484      $ 50,071   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per share attributable to Brooks Automation, Inc. common stockholders

   $ 0.15      $ 0.41      $ 0.19      $ 0.78   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per share attributable to Brooks Automation, Inc. common stockholders

   $ 0.14      $ 0.41      $ 0.19      $ 0.77   
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in computing earnings per share

        

Basic

     65,038        64,516        64,925        64,388   

Diluted

     65,828        65,061        65,552        64,801   


BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

 

     Six months ended
March 31,
 
     2012     2011  

Cash flows from operating activities

    

Net income

   $ 12,497      $ 50,089   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     10,621        8,312   

Stock-based compensation

     4,924        3,616   

Amortization of premium on marketable securities

     1,244        921   

Undistributed earnings of joint ventures

     (1,420     (718

(Gain) loss on disposal of long-lived assets

     (47     14   

Changes in operating assets and liabilities, net of acquisitions and disposals:

    

Accounts receivable

     (2,951     (6,199

Inventories

     3,540        (9,744

Prepaid expenses and other current assets

     (732     2,853   

Accounts payable

     5,894        (4,807

Deferred revenue

     (3,949     92   

Accrued warranty and retrofit costs

     (172     (538

Accrued compensation and benefits

     (5,630     (2,443

Accrued restructuring costs

     (168     (1,956

Accrued expenses and other current liabilities

     (1,954     (574
  

 

 

   

 

 

 

Net cash provided by operating activities

     21,697        38,918   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchases of property, plant and equipment

     (4,384     (3,175

Purchases of marketable securities

     (39,097     (71,225

Sale/maturity of marketable securities

     61,970        37,551   

Acquisition, net of cash acquired

     (8,716     —     

Decrease (increase) in restricted cash

     476        (3,788
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     10,249        (40,637
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from the issuance of common stock, net of issuance costs

     842        681   

Common stock dividend paid

     (10,442     —     
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (9,600     681  
  

 

 

   

 

 

 

Effects of exchange rate changes on cash and cash equivalents

     (24     543   
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     22,322        (495

Cash and cash equivalents, beginning of period

     58,833        59,823   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 81,155      $ 59,328   
  

 

 

   

 

 

 


Notes on Non-GAAP Financial Measures:

The information in this press release is for: internal managerial purposes; when publicly providing guidance on future results; and as a means to evaluate period-to-period comparisons. These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management believes these financial measures provide an additional way of viewing aspects of our operations, that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of our business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.

The press release includes financial measures which exclude the effects of non-recurring income and special charges such as restructuring charges and acquisition related charges. Management believes these measures are useful to investors because it eliminates accounting charges that do not reflect Brooks' day-to-day operations. A table reconciling income and diluted earnings per share from operations is presented below:

 

     Quarter ended  
     March 31, 2012      December 31, 2011      March 31, 2011  
     $      per share      $      per share      $      per share  

Net income attributable to Brooks Automation, Inc.

   $ 9,486       $ 0.14       $ 2,998       $ 0.05       $ 26,585       $ 0.41   

Purchase accounting impact on contracts acquired

     471         0.01         360         0.01         —           —     

Restructuring charges

     42         0.00         203         0.00         246         0.00   

Merger costs

     —           —           221         0.00         —           —     

In-process R&D purchased

     3,026         0.05         —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Brooks Automation, Inc.

     13,025         0.20         3,782         0.06         26,831         0.41   

Stock-based compensation

     3,181         0.05         1,743         0.03         2,407         0.04   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Brooks Automation, Inc., excluding stock-based compensation

   $ 16,206       $ 0.25       $ 5,525       $ 0.08       $ 29,238       $ 0.45   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


     Six Months Ended  
     March 31, 2012      March 31, 2011  
     $      per share      $      per share  

Net income attributable to Brooks Automation, Inc.

   $ 12,484       $ 0.19       $ 50,071       $ 0.77   

Purchase accounting impact on contracts acquired

     831         0.01         —           —     

Restructuring charges

     245         0.00         460         0.01   

Merger costs

     221         0.00         —           —     

In-process R&D purchased

     3,026         0.05         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Brooks Automation, Inc.

   $ 16,807         0.26       $ 50,531         0.78   

Stock-based compensation

     4,924         0.08         3,616         0.06   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Brooks Automation, Inc. - excluding stock-based compensation

   $ 21,731       $ 0.33       $ 54,147       $ 0.84   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Quarter ended     Six months ended  
     Mar 31,
2012
    Dec 31,
2011
    Mar 31,
2011
    Mar 31,
2012
    Mar 31,
2011
 

Net income attributable to Brooks Automation, Inc.

   $ 9,486      $ 2,998      $ 26,585        12,484        50,071   

Less: Interest income

     (273     (279     (261     (552     (536

Add: Interest expense

     —          7        28        7        29   

Add: Income tax provision (benefit)

     (659     300        1,035        (359     2,023   

Add: Depreciation

     3,280        3,262        3,109        6,542        6,454   

Add: Amortization of completed technology

     935        789        480        1,724        959   

Add: Amortization of acquired intangible assets

     1,138        1,217        449        2,355        899   

Add: Stock-based compensation

     3,181        1,743        2,407        4,924        3,616   

Add: Restructuring charges

     42        203        246        245        460   

Add: Purchase accounting impact on contracts acquired

     471        360        —          831        —     

Add: Merger costs

     —          221        —          221        —     

Add: In-process R&D purchased

     3,026        —          —          3,026        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 20,627      $ 10,821      $ 34,078      $ 31,448      $ 63,975   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Contact:

Brooks Automation, Inc.

Barbara Culhane

Corporate Marketing Manager

978-262-2400

barbara.culhane@brooks.com

John Mills

Senior Managing Director

ICR, LLC

310-954-1105

john.mills@icrinc.com